Net Tuition Revenues, Subsidies, and Education Expenditures per Student over Time

Between 2005-06 and 2015-16, subsidy amounts increased in all sectors except public doctoral institutions. However, as a share of per-student education expenses, subsidies declined in all public sectors.

Notes & Sources

NOTES: Net tuition revenue is the amount of revenue an institution takes in from tuition and fees, net of all institutional grant aid provided to students. Some of this revenue comes in the form of Pell Grants and other financial aid from federal and state governments and other sources. Subsidies are defined as the portion of the cost of educating students not covered by net tuition revenue. Education and related expenditures include spending on instruction, student services, and the education share of spending on central academic and administrative support, as well as operations and maintenance. Expenditures for both undergraduate and graduate students are included in these estimates. Institutional averages are weighted by 12-month FTE enrollments.

The average subsidy per full-time equivalent (FTE) student at public two-year colleges declined by $940 (15%) in 2015 dollars between 2005-06 and 2010-11; it increased by $1,190 (22%) between 2010-11 and 2015-16, as enrollment in the sector declined.

Between 2005-06 and 2015-16, educational expenditures per FTE student increased by 17% in inflation-adjusted dollars at public doctoral universities, 18% at public master’s universities, 12% at public bachelor’s colleges, and 11% in thepublic two-year sector.

In 2015-16, the subsidy portion of education and related costs at private nonprofit institutions ranged from 14% at master’s universities to 46% at doctoral universities.

Between 2005-06 and 2015-16, average educational expenditures per FTE student at private nonprofit institutions increased by 17% at doctoral universities, 11% at master’s universities, and 9% at bachelor’s colleges, after adjusting for inflation.

Doctoral and master’s universities enroll both undergraduate and graduate students, while bachelor’s institutions enroll almost exclusively undergraduate students. Because average expenditures for graduate students are generally higher than those for undergraduate students, per-student revenues and expenditures at different types of institutions are not strictly comparable.

In addition to the amounts included in “education and related expenditures,” institutional budgets include expenditures for other purposes such as research, public service, and auxiliary enterprises.